NPS subscribers joining after 65 years of age can take up to 50% equity exposure

PFRDA said in a circular that in response to requests from a large number of existing subscribers to invest in NPS above 60 years or after their retirement, and in response to the desire of citizens above 65 years to open NPS, it would be decision has been taken. In the interest of the subscribers, the entry age of NPS and benefiting them with the opportunity to make them long term permanent pension assets. “The current age of entry, which is 18-65 years, has been revised to 18-70 years,” the PFRDA said.

“Any Indian citizen, resident or non-resident and Overseas Citizen of India (OCI) between the age of 65-70 years can join NPS and can continue or suspend their NPS account till the age of 75 years. have closed their NPS accounts, they are allowed to open a new NPS account as per the enhanced age eligibility criteria,” PFRDA said.

The features and benefits of increased age of entry are given below:

Pension fund and asset allocation option

Subscriber, joining NPS after the age of 65 years, can exercise the choice of PF and asset allocation under Auto and Active option with maximum equity exposure of 15% and 50% respectively. PF can be changed once in a year while asset allocation can be changed twice.

exit and ejection

The exit conditions for subscribers who join NPS after the age of 65 years will be as follows:

> Normal exit will be after 3 years. The subscriber will need to utilize at least 40% of the corpus for the purchase of the annuity and the remaining amount can be withdrawn as a lump sum. However, if the corpus is equal to or less than ₹5.00 lakh, the subscriber can choose to withdraw the entire accumulated pension amount in lump sum.

Exit before completion of 3 years will be treated as premature exit. Under pre-mature exit, the subscriber has to use at least 80% of the corpus for the purchase of annuity and the balance can be withdrawn in a lump sum. However, if the corpus is equal to or less than ₹2.5 lakh, the subscriber can choose to withdraw the entire accumulated pension amount in lump sum.

In case of unfortunate death of the subscriber, the entire amount will be paid as a lump sum to the nominee of the subscriber.

Customers are also eligible to open a Tier II account to invest their disposable income to optimize their returns, which can be withdrawn at any time, unlike a Tier-I account.